Search
`
October 30, 2024

Posted on

EPA Announces Nearly $3B for Clean Port Equipment

EPA on Oct. 29 announced it will disburse $2.9 billion in grants to U.S. port authorities to purchase zero-emission equipment, vehicles and on-site electricity generators through its Clean Ports Program.

The agency said the funds would support the purchase of 1,500 units of cargo-handling equipment, 1,000 drayage trucks, 10 locomotives and 20 vessels, along with battery-electric and hydrogen vehicle charging and fueling infrastructure, and solar power generation. It estimates the equipment and infrastructure will prevent more than 3 million metric tons of CO2 emissions, 12,000 short tons of NOx and 200 short tons of PM2.5 in the first 10 years of operation.

EPA selected 55 state, city and county agencies across the continental U.S. and in Alaska, Hawaii and Puerto Rico. Most are shipping ports along the coasts, but the awardees also included several agencies overseeing inland intermodal terminals, such as in Dallas and Salt Lake City.

While “ports are vital to the U.S. economy,” the agency said, “the port and freight equipment responsible for moving goods including trucks, locomotives, marine vessels, and cargo-handling equipment contribute to significant levels of diesel air pollution at and near port facilities. This pollution is especially harmful to nearby communities’ health and contributes to climate change.”

“Delivering cleaner technologies and resources to U.S. ports will slash harmful air and climate pollution while protecting people who work in and live nearby ports communities,” EPA Administrator Michael Regan said in a statement.

The largest winners were Los Angeles and the Port of Virginia, which were granted more than $411 million and about $380 million, respectively. EPA said applicants “were evaluated in part on their workforce development efforts, to ensure that projects will expand access to high-quality jobs.”

The Maryland Port Administration and Department of Transportation received more than $147 million for equipment at the Port of Baltimore, where President Joe Biden spoke on Oct. 29 to celebrate the awards.

“For too long, [ports] have run on fossil fuels and aging infrastructure, putting workers at risk and exposing nearby communities to dangerous pollution,” the president said. “The new $3 billion in funding we’re delivering today will help ports all across America … strengthen supply chains, make American businesses more competitive and keep consumer prices down while slashing carbon pollution.”

Biden took the opportunity to praise state and federal efforts to clear the wreckage of the Francis Scott Key Bridge and reopen the port. “We won’t stop until the new bridge is finished completely,” he said. “Finished, finished, finished. I call on Congress to fully fund it, this year!”

The president was joined by Maryland Gov. Wes Moore, whom he said “may be the best governor in the country,” and the state’s U.S. senators, Ben Cardin and Chris Van Hollen, the latter of whom he called “Sen. Van Halen.”

“What the hell is his name? He’s new,” Biden joked after the gaffe.

Posted on

BOEM, DOD to Coordinate on Offshore Wind

ATLANTIC CITY, N.J. — The U.S. Department of Defense and Bureau of Ocean Energy Management have reached a memorandum of understanding intended to improve the collaboration of offshore wind power development proposals. 

The move is intended to address one of the frustrations common to offshore wind development and countless other endeavors: the need to work across multiple government agencies that operate independently of one another, or sometimes even at cross purposes. 

While DOD is just one of many governmental entities, it exerts a particularly strong influence on decision-making. Offshore wind development has been paused indefinitely off parts of the Maryland and Virginia coastlines because of potential conflict with the heavy military activity there. 

BOEM Director Elizabeth Klein and Brendan Owens — assistant secretary of defense for energy, installations and environment — formalized the agreement between their two agencies at the close of the first day of American Clean Power’s Offshore Windpower conference Oct. 29. 

Owens emphasized the commonality between the two agencies. 

“The other hat that I get to wear in the job that I have at DOD right now is chief sustainability officer,” he said. “So there’s a tremendous convergence of what the Biden administration is asking all of its federal agencies to do, and the work that you all are doing and the work that DOD is doing.” 

ACP CEO Jason Grumet spoke of the imperative of collaboration as developers try to unite disparate groups of stakeholders and the challenges that presents. 

“Anyone who has actually spent time in federal service knows that one of the most challenging collaborations is among federal agencies,” Grumet said. “One of the things that I think really has marked this administration has been a remarkable amount of coordination and collaboration in a whole-of-government understanding of what it’s going to take to manage and balance our energy and environmental needs.” 

Almost all power for DOD facilities comes from outside those facilities, Owens said, so the military has a direct interest in the grid from a mission capability standpoint. “If we can flex from one source to another, that gives us resilience for our mission, and that’s the reason that we view the deployment of offshore wind critically as something that needs to be accelerated.” 

But not, he said, at the expense of training and readiness. “So DOD and BOEM have worked together to identify … and avoid impacts to national security for offshore energy planning,” Owens said, “and this MOU codifies the way that we will do that going forward.” 

“The MOU helps to define and clarify roles and duties of both of our organizations in leasing and project planning processes,” Klein said. 

In a news release, BOEM said the MOU expands on a 1983 memorandum of agreement on their activities in the Outer Continental Shelf. 

The announcement flagged four key goals: 

    • find mutual solutions that support renewable energy in a manner compatible with essential military operations; 
    • collaborate as early as possible in the offshore wind leasing process; 
    • regularly communicate and exchange information at the staff and leadership levels; and 
    • determine what areas should be deferred from leasing to enable the performance of DOD activities on the OCS. 
Posted on

NV Energy Explains EDAM Choice

NV Energy’s decision to join CAISO’s Extended Day-Ahead Market (EDAM) rather than SPP’s Markets+ was based partly on concerns that participation in the latter would “lead to substantial expenditures with limited results,” a representative of the Nevada utility said.

In contrast, NV Energy has “high confidence” that EDAM’s first-movers will stand up the market and it will have the connectivity to produce customer benefits, according to David Rubin, the utility’s federal energy policy director.

Rubin was speaking Oct. 28 at a meeting of Nevada’s Regional Transmission Coordination Task Force to give an update on the utility’s day-ahead market activities.

The RTCTF was created by 2021’s Senate Bill 448, which also requires transmission providers in the state to join an RTO by Jan. 1, 2030.

In May, NV Energy confirmed in public statements and regulatory filings that it intends to ask the Public Utilities Commission of Nevada (PUCN) for authorization to join EDAM. (See NV Energy Confirms Intent to Join CAISO’s EDAM.)

The decision is viewed as an important victory for EDAM because of NV Energy’s central location in CAISO’s Western Energy Imbalance Market (WEIM).

Rubin showed a diagram with dark blue circles depicting balancing areas expected to participate in EDAM, including PacifiCorp, Portland General Electric, the Los Angeles Department of Water and Power, Idaho Power and the Balancing Authority of Northern California.

Expanding that footprint to include other WEIM entities would provide even greater benefits to participants, Rubin said. But even if the footprint doesn’t widen from what’s now expected, “the dark blue footprint with its connectivity should produce extensive benefits,” he said.

A Brattle Group study for NV Energy showed that footprint contains 46% of WECC’s load, 80% of the solar generation, 70% of the storage capacity and much of the wind power, Rubin said.

It projected that the utility’s annual benefits with EDAM would range from $62 million to $149 million, depending on the market footprint. In contrast, results from Markets+ participation would range from a $17 million annual loss to a $16 million gain. (See NV Energy to Reap More from EDAM than Markets+, Report Shows.)

Stakeholder Role

Another factor NV Energy weighed in its day-ahead market decision was the role of stakeholder participation.

In EDAM, CAISO staff work to balance positions expressed by stakeholders, Rubin said, while Markets+ employs a stakeholder-led process in which staff are more passive.

Rubin said that when NV Energy participated in the SPP process, Northwest entities tended to vote as a block while Southwest entities often varied in their opinions. As a result, NV Energy was frequently outvoted, he said.

In CAISO’s process for EDAM, “staff involvement helps protect minority interests that can get overruled by SPP’s deterministic voting structure,” Rubin said.

CAISO’s process also makes greater use of written comments, he said, which allow stakeholders to more fully explain their positions. And the written comments can be reviewed by those who weren’t able to attend a meeting.

Building on WEIM Benefits

By joining EDAM, NV Energy can build on the substantial benefits it has earned through participating in WEIM since December 2015.

CAISO announced Oct. 28 that overall WEIM benefits have grown to $6.25 billion; NV Energy has seen cumulative benefits of $589 million through the third quarter of 2024.

Rubin said NV Energy’s WEIM benefits have grown appreciably as the company has gained experience in the market and its footprint has expanded. Those benefits have helped bolster NV Energy’s confidence in EDAM.

In contrast, “we have less confidence in Markets+, even if entities spend the $150 million necessary to build out the SPP design,” he said.

NV Energy expects to file a request for authorization to join EDAM with the PUCN in the second quarter of 2025. That timing will give the company time to complete its integrated resource plan filed with the commission and see how the footprints evolve for the two competing day-ahead markets.

There also may be reactions by then to PacifiCorp’s open access transmission tariff for its participation in EDAM, expected to be filed with FERC in November, as well as a potential PGE filing in January.

Posted on

Panelists Discuss Electric, Election Security Intersections

MINNEAPOLIS — With widespread security concerns over next week’s U.S. presidential election and the Canadian federal elections in 2025, panelists at last week’s GridSecCon said the institutions serving electric reliability are “absolutely critical” for ensuring the elections remain safe and secure. 

The Electricity Information Sharing and Analysis Center (E-ISAC), which co-sponsored the 13th annual conference with the Midwest Reliability Organization, decided to hold an election security panel after repeated warnings about the “complex and dynamic” threat landscape facing U.S. and Canadian election infrastructure, according to E-ISAC Vice President of Security Operations and Intelligence Matt Duncan.  

“It’s more than just a presidential election that can be influenced,” Duncan said, reminding the audience of warnings from security experts and the federal government about cyber campaigns by foreign adversaries including China and Iran. (See Agencies Describe a Year of Iran Cyber Attacks.) “We have very close races in the House and Senate and state houses across the country, and our adversaries know that.” 

The links between election security and grid security go beyond the fact that both are critically important, panelists said. Timothy Davis, senior elections cyber threat analyst at the Elections Infrastructure ISAC (EI-ISAC), observed that threat actors “use a lot of similar tactics, no matter who they’re targeting,” which means security professionals in both sectors can share their experiences to strengthen each other. 

Spencer Wood, an election security adviser for the Cybersecurity and Infrastructure Security Agency (CISA), said physical security is as important as electronic hygiene. Describing the “horrid amounts of violence and rhetoric” that he has seen directed against election workers across the country, Wood added that state officials also need to be prepared for disruptions to the grid — both deliberate and accidental. 

“There will be power outages on election day. A squirrel will decide to jump on a transformer. There will be a tree that will fall somewhere, or an accident that will happen, or at a polling location, someone will plug in a Crock-Pot, and that will be enough to trip the breakers at the polling location,” Wood said. “That’s why you … have an incident response plan. But really the … trusted source of information is the state and local election officials.” 

Davis agreed with Wood’s recommendation for incident response plans, saying he and his colleagues at the EI-ISAC “hammer those over and over again.” Knowing whom to contact — especially on Election Day — is essential to resolve issues as quickly as possible. He said electric utilities should feel as comfortable interacting with the EI-ISAC as they do with its counterpart in their sector. 

Brandi Martin, assistant director of the Energy Security Policy and Partnerships team at the Department of Energy, said utilities should be prepared to coordinate with federal officials as well. She reminded attendees that a well-organized response plan can summon responses from a wide range of organizations, as happened during the recent reactions to Hurricanes Helene and Milton. 

“We have a lot of these practiced mechanisms, whether it’s a wildfire … hurricane, or polar vortex. So on Election Day, if we have a weather event, a cyber event or a physical event, we’re ready there to stand up those coordination calls and mechanisms as well,” Martin said. 

Posted on

Gulf of Maine OSW Auction Results in Four Leases Worth $21.9M

The first-ever offshore wind lease auction for the Gulf of Maine resulted in the sale of four offshore lease areas to two developers, bringing in a total of about $21.9 million.

The auction offered eight lease areas in total, with the potential to provide 13 GW of power. (See BOEM Announces Gulf of Maine Offshore Wind Lease Sale.) The four sold lease areas could host enough offshore wind generation to power 2.3 million homes, the U.S. Department of the Interior said in the Oct. 29 announcement.

Avangrid Renewables and Invenergy NE Offshore Wind each provisionally won two lease areas, which range in size from 97,854 acres to 124,897 acres.

Avangrid CEO Pedro Azagra said the company’s leases provide for the potential development of about 3 GW of floating offshore wind.

“Securing these lease areas provides a unique opportunity to advance our growing business at a significant value and reinforces our unwavering commitment to helping the New England region meet its growing need for reliable, clean energy,” Azagra said.

“With today’s lease sale building on earlier deepwater auctions on the West Coast, the United States is truly on track to become a global leader in floating offshore wind technology,” said Anne Reynolds, vice president for offshore wind at American Clean Power.

While all commercial offshore wind farms currently under construction or in operation in the U.S. feature fixed-foundation technology, farms developed in the deeper waters in the Gulf of Maine will need to rely on floating technology.

Although floating offshore wind technology is in its early stages — the world’s largest floating installation has an 88-MW nameplate capacity — its development will be key to meeting state and federal clean energy goals, due to the limited availability of viable fixed-bottom locations.

The U.S. Bureau of Ocean Energy Management (BOEM) in August approved a floating wind research lease for the state of Maine, which eventually could provide the state with 144 MW of offshore wind. (See Maine Approved for Floating Wind Research Lease.)

The $21.9-million price tag is significantly less than BOEM’s 2022 California lease sale, which also was centered around floating technology. The California leases, which cover a smaller overall footprint than the Gulf of Maine leases, brought in $757 million. (See First West Coast Offshore Wind Auction Fetches $757M.)

The offshore wind industry’s struggles to scale up over the past two years may have cooled bidder interest in new lease areas. An Oregon offshore wind lease auction scheduled for Oct. 15 was postponed due to a lack of interest from potential bidders, while BOEM canceled a Gulf of Mexico auction planned for September. (See BOEM Postpones Oregon Offshore Wind Auction and BOEM Cancels Gulf of Mexico Wind Lease Auction.)

Avangrid’s lease areas (OCS-564 and OCS-568) are located about 34 miles from Massachusetts and feature “strong wind speeds” along with “relatively shallow waters within the limits of existing floating wind technology” and multiple potential interconnection points, Avangrid said.

While Avangrid’s lease areas are located adjacent to each other east of Massachusetts, Invenergy’s lease areas bookend the northeast and southeast corners of the wind energy area. Invenergy’s southern lease (OCS-567) is located about 25 miles east of Massachusetts, while its northern lease (OCS-562) is located southeast of Portland, Maine, about 53 miles offshore.

Reynolds specifically praised Maine Gov. Janet Mills (D) for the state’s “proactive approach to floating offshore wind technology.”

In 2023, Maine passed legislation (LD 1895) authorizing the procurement of at least 3,000 MW of offshore wind power “in proximate federal waters” by the end of 2040. The law directs the Governor’s Energy Office to submit its first solicitation to the Public Utilities Commission by July 2025, with the PUC set to issue a request for proposals in January 2026.

Massachusetts also is well located to purchase power from the Gulf of Maine areas, and the state has indicated it will need to procure at least 10 GW of power from offshore wind in the Gulf of Maine to meet its climate targets.

Developers recently broke ground on a new offshore wind terminal in the city of Salem, Massachusetts, which is located in relatively close proximity to the southern Gulf of Maine lease areas. (See Mass. Breaks Ground on Salem Offshore Wind Terminal.)

The availability of future leases in the area could be affected by the outcome of the presidential election in November, as Republican nominee Donald Trump has expressed hostility toward offshore wind. The Department of the Interior has another lease auction scheduled for the Gulf of Maine in 2028.

Posted on

Federal Judge Tosses Out Texas’ ROFR Law in Non-ERCOT Regions

A federal judge found Texas’ law instituting a state right of first refusal (ROFR) law violates the Commerce Clause and prohibited its enforcement in non-ERCOT regions, in an order issued Oct. 28. 

Judge Robert Pitman of the U.S. District Court for the Western District of Texas in Austin handed down the ruling on remand from the Fifth Circuit Court of Appeals in the case of NextEra Energy Capital Holdings v. Kathleen Jackson in her official capacity as a commissioner of the Public Utility Commission of Texas. (See 5th Circuit Finds in Favor of NextEra’s ROFR Appeal.) 

The Fifth Circuit decision also was appealed to the Supreme Court, which declined to take up the case in December 2023. (See SCOTUS Won’t Take up Texas Appeal of ROFR Law.) 

The Texas Legislature passed SB 1938 after FERC Order 1000 removed federal ROFRs but required ISO/RTOs such as MISO and SPP, which serve the parts of Texas in the Eastern Interconnection, to respect state ROFR laws. 

The law caused NextEra to lose a transmission project in East Texas that it had won in MISO’s competitive planning process and another project it had tried to buy from an incumbent in SPP’s territory.  

The Commerce Clause of the U.S. Constitution gives the federal government the power to regulate interstate commerce. State laws can get around it if they have legitimate policy reasons. But the judge knocked down all the arguments ROFR supporters brought up in the case. 

Texas claimed the law codified existing practices. But NextEra was able to build in the state prior to enactment of the ROFR law, as it did in the Competitive Renewable Energy Zone law. Another justification was to clean up statutory language after the CREZ lines were opened to out-of-state firms. The judge found that was not a valid reason to get around the Commerce Clause. 

Texas also wanted to avoid federal rate regulation, but the judge shot down that reasoning. 

“Balkanizing a state from interstate commerce is the very problem the Commerce Clause is meant to guard against… and so Texas’ desire to avoid the interstate market — and the federal regulation that comes with it — is not a legitimate local interest,” the court ruling said. 

The final reason was an alleged impact to reliability because the competitive bidding process adds time to transmission development. But SPP transmission lines that are needed quickly can get around the competitive process. And MISO does not have a competitive process for lines that are needed solely for reliability. 

“The federal bidding process does not undermine reliability by substantially delaying projects because these projects already take years to plan,” the court ruling said. “The type of transmission lines defendants are concerned about are proposed through federal regional planning bodies to promote long-term transmission development. Even without a competitive bidding process, the procedure for identifying those types of regionally planned transmission lines is time consuming.” 

Texas can ensure reliability with the PUC’s certificate process, and the regulator continues to have authority when lines are in service to ensure they are operated reliably, the judge said. 

“If those processes are insufficient to ensure reliability, then Texas could enact new laws that add reliability mandates,” the decision said. “The constitutional solution to Texas’ issue of ensuring reliability is to evenhandedly increase reliability standards, not to treat all out-of-state entities as necessarily unreliable.” 

When it comes to competitive processes, FERC requires transmission planners to consider reliability. MISO found NextEra’s proposal for the Hartburg-Sabine project had adequate plans and infrastructure in place to ensure reliable operation. NextEra has a pending case at the District of Columbia Circuit Court of Appeals to try to get that project back, though MISO and FERC have since said it is no longer needed. 

Posted on

EPRI Launches DCFlex Initiative to Help Integrate Data Centers on the Grid

The Electric Power Research Institute has launched its “DCFlex” initiative that will explore how data centers can support the grid, enable better asset use and support the clean energy transition.

The initiative’s founding members include Compass Datacenters, Constellation Energy, Duke Energy, ERCOT, Google, Meta, New York Power Authority, NRG Energy, NVIDIA, Pacific Gas and Electric, PJM Interconnection, Portland General Electric, QTS Data Centers, Southern Company and Vistra.

DCFlex will coordinate real-world demonstrations of flexibility in a variety of existing and planned data centers and electricity markets, creating reference architectures and providing shared learnings to enable broader adoption of flexible operations that benefit consumers.

The EPRI initiative announced Oct. 29 will set up five to 10 flexibility hubs, demonstrating strategies that enable operational and deployment flexibility, streamline grid integration and transition backup power solutions to grid assets. Demonstration deployment will start in the first half of 2025 with testing running through 2027.

“One of the key areas where people are talking a lot, but not doing a lot, is the area of understanding how flexible data centers can be, and how we actually make that happen,” EPRI’s Principal Technical Executive Tom Wilson said in an interview. “And so that was the motivation.”

EPRI is a nonprofit that works to address challenges in the energy industry. The DCFlex initiative was born out of discussions at the U.S. Secretary of Energy’s Advisory Board about how it could help power data centers. EPRI spoke with 50 experts from the power industry and the data center industry, Wilson said.

Data centers can respond to signals in the grid in two ways — some of their computational tasks can be shifted around in time and to other data centers, and backup power generation at the facilities can be used instead of the grid, Wilson said. Diesel generation dominates their backup power now, but cleaner options more regularly could respond to grid signals without violating state air permits.

“In terms of computational flexibility, I’d say, you know, if you’re at an ATM trying to get money out, and you get the answer that you can’t get your cash until the electricity prices are lower or there’s more electricity available, you won’t be happy,” Wilson said. “And so, there are a lot of functions of data centers that you do have to have real time. Basically the customer-facing things that data centers do. Other things like indexing the web and activities like that are potentially more flexible in where they occur and when they occur.”

The customer-facing aspects of artificial intelligence also need to be ready for use whenever, but AI models require training, and that energy-intensive process can be shifted in time, Wilson said.

Google, for example, has shifted computing demand to where cheap, clean power is available at its different data centers for the past five years, he added.

“At Google, we see this moment as a generational opportunity for the public and private sector to work together to meet energy demand responsibly and unlock significant benefits for people, the economy and the planet,” Google’s Global Head of Energy Market Development and Innovation Caroline Golin said in a statement. “Through the leadership, expertise and convening power of EPRI, DCFlex will be an important collaboration vehicle to align our common goals, as we work together to build a stronger electrical grid for all.”

Data centers have helped transform the demand for power. The U.S. had flat growth for roughly two decades, but with data centers being added in the hundreds of megawatts, reshoring of industry and efforts to electrify other uses of energy, that has changed dramatically in the past year, Wilson said.

It used to be easy to plug a data center into the grid, but the growing demand has slowed the process. In 2022, Dominion put a moratorium on new connections in its territory, which includes the largest concentration of data centers in the world, called Data Center Alley in Loudon County, Va., Wilson said.

A 500-MW data center is equivalent to tens of thousands of homes being added to the grid much more quickly than more granular demand growth from an expanding population or a growing economy. Flexibility can help the grid absorb major new loads more quickly.

“In many cases, if you have transmission issues, it may just be that I can provide the power you want for 350 days a year,” Wilson said. “For 15, I can’t guarantee it for every hour in those days because of congestion, peak temperatures or higher, low — different issues. And if you have that response, is there a way to get around providing that powerful 15 days for the data centers in order to connect it now?”

When it comes to data flexibility, being able to dial back the demand from a 500-MW data center offers a significant source of demand response for the grid, he added.

“Or if it’s able to turn on backup generation and take its load entirely off the grid, that’s a huge amount of capacity that can come online,” Wilson said. “Historically, we’ve seen this with aluminum smelters and other large industry right where they’ve traditionally gotten a phone call that said, ‘can you guys turn off these hours, these days?’”

Another key is better planning around when and where data centers want to connect to the grid, said Wilson. It takes time to stand up a new data center.

“Better coordinating those ramp up schedules is really important for an understanding where both parties really are in terms of their needs and ability to respond,” Wilson said. “Because, you know, if you’re talking a gigawatt data center or 500-MW data center that’s a large amount of load, and it can be in over eight years or three years or two years. It makes a big difference.”

Constellation, which has worked with Microsoft to reopen a Three Mile Island nuclear plant to serve a Microsoft data center and has discussed co-locating data centers at its other nuclear plants, welcomed EPRI’s initiative.

“Data centers are integral to our daily lives, economy and national security,” Constellation CEO Joe Dominguez said in a statement. “Our energy system is built to handle the extreme demands of our hottest summer days and coldest winter nights but is often underutilized. The real challenge isn’t a lack of energy for data centers but managing the peak demand hours. The ability of data centers to flex during these critical periods is crucial.”

Posted on

MISO and TVA Strike Emergency Energy Purchase Agreement, Request FERC OK

MISO and the Tennessee Valley Authority hope to implement an emergency energy purchase framework by Christmas Eve.  

The two have filed an agreement before FERC for permission to be able to transact energy with one another during emergencies by Dec. 24 (ER25-197).  

MISO and TVA have never had an agreement to mutually supply the other with emergency power, and they said they traditionally had “other arrangements” that seemed sufficient to meet the needs of their regions.  

However, the two said the late December 2022 winter storm changed their views. 

“Due to the changing configuration of the grid and recent emergency events, like Winter Storm Elliott, MISO and TVA have become increasingly focused on the need for additional coordination and planning to better ensure reliability in an emergency,” MISO Managing Senior Corporate Counsel Amy Thurmond wrote to FERC in a transmittal letter. “To that end, each has identified the need to purchase emergency energy from the other to maintain the reliability of each individual transmission system and, more generally, the integrity of the Eastern Interconnection.”  

MISO and TVA have contemplated an agreement since MISO supplied up to 5 GW at times during the storm Dec. 23, 2022, to the Tennessee Valley Authority, SPP, Associated Electric Cooperative Inc. and the Southeast planning region. MISO’s exports that day played a role in forcing its own maximum generation event. After, MISO leadership lamented that though MISO could assist TVA during dire straits, TVA was prohibited from returning the favor when MISO encountered precarious operations. (See MISO, TVA to Enter Agreement on Emergency Purchases; MISO Defends Energy Exports During December Storm.)  

TVA’s ability to provide power to parties outside of its service territory is limited by the TVA Act. The federal utility can supply power only to parties that held exchange power arrangements as of July 1, 1957, and their successors. TVA for years interpreted the TVA Act as a barricade to selling power directly to MISO.  

MISO is less restricted in the balancing authorities it can sell to or purchase emergency energy from. The RTO’s tariff requires only that there be an agreement between MISO and another BA.  

MISO noted that two of TVA’s neighboring electric systems included in the 1957 agreement — Ameren and Entergy — joined MISO years ago. MISO and TVA share a seam in Mississippi and along the Arkansas-Tennessee state line.  

Ameren and Entergy as Avenues for Trade

The freshly filed agreement involves Ameren and Entergy granting authority to MISO to act on their behalf to buy emergency energy from TVA. MISO said the emergency energy it coordinates and directs from TVA on behalf of Entergy and Ameren would be used for the “sole purpose of maintaining electric reliability.” 

Terms of the agreement stipulate that TVA and MISO can share power up to the transfer limits in use between the two when one is experiencing an emergency. The two said supply to the other shouldn’t come at the expense of the “safe and proper operation” of their own transmission systems and service to their own customers and shouldn’t impede obligations they might have with other parties.  

MISO and TVA said one or the other should be experiencing a NERC-defined Energy Emergency Alert Level 2 before an offer to supply emergency energy can be made. Offers would be recallable up to 10 minutes ahead of time, and MISO and TVA said they would make efforts to ensure that an emergency energy transaction “continues only until it can be replaced by a commercial transaction.” All emergency energy transactions would be metered and billed based on scheduled deliveries. Emergency energy charges from the delivering BA to the receiving BA would be calculated based on a two-part formula that includes an energy portion and any transmission charges to an agreed-upon delivery point.  

When MISO was the delivering BA, the rate per megawatt hour would be either 150% of the hourly locational marginal price at the buses near the point of exit, 110% of the verifiable cost of the resources used to supply the power or $100/MWh, whichever is greater. When TVA was delivering megawatts, the rate similarly would be the greatest of either 150% of the hourly LMP at the points of injection in either the Ameren or Entergy service territory, 110% of the verifiable cost of the resources used to supply the power or $100/MWh.  

MISO and TVA plan to use an invoice system with rules that allow one or the other to collect interest on delinquent payments or raise billing disputes. MISO added that though it would be sourcing emergency energy on behalf of Ameren and Entergy, under no circumstances would the two members be liable for the RTO’s obligations under the agreement.  

Posted on

Federal Briefs

DOI Approves Nevada Lithium Mine

The Department of the Interior has approved a permit for a new lithium-boron mine in Nevada. The Rhyolite Ridge mine will help expedite production of lithium, which is a key component in EV batteries. Construction of the mine should begin in 2025. 

More: The Associated Press 

FAA Issues Final Rule on Air Taxis

The Federal Aviation Administration has issued the final rule for air taxis and other electric-powered aircraft, calling the regulations the “final piece in the puzzle” to introducing the aircrafts. 

The final regulation lays out the qualifications and training required for instructors and pilots to fly aircraft in the “powered lift” category, along with the operational requirements for the electric-powered aircraft, the FAA said. 

FAA Administrator Mike Whitaker noted the powered lift category is the first new aircraft category in nearly 80 years. 

More: The Hill 

US Installs 5 GW of Storage So Far in 2024

The U.S. has installed 5 GW of battery storage nationally through July, according to the EIA. As of July, more than 20.7 GW of battery storage capacity was available in the country. The EIA predicts the capacity could double again to 40 GW by 2025 if further planned expansions occur. 

More: The Guardian 

Posted on

Company Briefs

Dominion Completes Sale of CVOW Stake, Acquisition of Kitty Hawk

Dominion Energy announced it has completed its $2.6 billion sale of a 50% noncontrolling stake in its Coastal Virginia Offshore Wind (CVOW) project to investor Stonepeak. 

Dominion will retain full operational control of construction and operations of the $9.8 billion project. As of August, the 50th monopile foundation of CVOW’s 174 turbines was installed and the project is expected to be completed in 2026. 

Dominion also announced the completion of its purchase of the Kitty Hawk North offshore wind lease area from Avangrid for $160 million. Avangrid will retain ownership and associated rights to the Kitty Hawk South lease and will continue the development of the area. 

More: Virginia Business, offshoreWIND.biz 

Tesla Reports Q3 Profit Increase

Tesla said its profits for the third quarter increased 17%. The company said it earned $2.2 billion from July through September, compared with $1.9 billion in the same period last year. Sales were $25.2 billion, compared with $23.4 billion a year earlier. Sales of storage batteries jumped 52% in the quarter, while revenue from services like charging climbed 29%. 

More: The New York Times 

Google Signs PPA for 350-MW Texas Solar Project

Google announced it has agreed to a deal with Engie North America to offtake 350 MW from the company’s Chillingham solar project in Texas. The solar farm is being installed north of Austin. Google will use the electricity to meet the demand of its state operations. 

More: Renewables Now